Equatorial Guinea calls on oil producers to stand together

Created: Tuesday, 04 December 2018 05:00

Collaboration of Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC producers in committing and adhering to oil production cuts resulted in the historic Declaration of Cooperation in 2017. (Image source: Benito La Malfa/Flickr)The ministry of Mines and Hydrocarbons of Equatorial Guinea has called for unity amongst oil producing countries ahead of the 175th ordinary meeting of the organisation of petroleum exporting countries in Vienna

The meeting will be a critical juncture for the organisation as it grapples with declining oil prices and a decision whether to prolong production cuts which stabilised global oil markets and brought the industry back from collapse, the ministry said in a statement.

Equatorial Guinea stands with OPEC and Non-OPEC countries, pledging continued support to the strong leadership demonstrated by the members and Secretary General of OPEC, Mohammed Barkindo, in a complex period for the oil and gas industry, the Ministry stated.

Gabriel Mbaga Obiang Lima, minister of Mines and Hydrocarbons, said, “Never in the history of the oil industry has unity amongst producing nations been more important. We call on oil producers to stand together and in solidarity with OPEC and under the leadership of our brother Barkindo, in our efforts to maintain balance and stability in oil markets.”

The country joined OPEC in 2017, after signing on to the production cuts deal initially as a non-OPEC member in 2016. After the 2014 crash, its oil-dependent economy went into recession.

Heading into 2019, the African nation is looking ahead at US$2.4bn of foreign investment and eight exploration wells to be drilled, the ministry added. The country’s hopes for 2019 are not unique within Africa, which has hosted some of the world’s biggest recent oil discoveries and is welcoming several new producers, including Senegal, Uganda, Mauritania and Mozambique.

A collaboration of OPEC and non-OPEC producers in committing and adhering to oil production cuts resulted in the historic Declaration of Cooperation in 2017. The landmark agreement is largely credited with stabilising oil markets and triggering a new wave of investment in oil exploration, which is crucial for African countries like Equatorial Guinea.

“Just two years ago, the oil and gas industry was in turmoil and new investments in the industry were put on hold or cancelled altogether. But the markets have experienced a remarkable recovery due in large part to the commitment of all OPEC and Non-OPEC countries in the historic Declaration of Cooperation. In this environment, oil and gas companies are emerging from the downturn stronger and more efficient. Investors are actively seeking fresh opportunities,” the minister added.